Kasundia Co-operative Bank Ltd., Howrah – Penalised
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Kasundia Co-operative Bank Ltd., Howrah. RBI said the bank had resorted to borrowings without prior approval from the Reserve Bank, violating Section 35A directions under the Banking Regulation Act, 1949 (AACS). After a show-cause notice and the bank's written reply, RBI concluded that the contravention was substantiated and warranted the penalty.
RBI imposed a penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 after finding that Kasundia Co-operative Bank Ltd., Howrah had violated Section 35A directions by resorting to borrowings without prior prior approval from RBI. The bank received a show-cause notice, submitted a written reply, and RBI concluded that the violations were substantiated and warranted penalty.
Severity Assessment
A monetary penalty of Rs 1 lakh falls in the lowest monetary band, and there is no business restriction or suspension.
The bank must bear the monetary penalty, but the release does not indicate any additional operational restriction or suspension. The finding records a compliance breach relating to borrowing without RBI approval and may affect the bank's regulatory record.
Published as Kasundia Co-operative Bank Ltd., Howrah
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